Time Warner Cable board rejects Charter bid

LOS ANGELES (MarketWatch) -- Time Warner Cable Inc.
TWC, +5.88%
said late Monday that its board of directors "had unanimously rejected a third grossly inadequate proposal" by Charter Communications Inc.
CHTR, -1.85%Earlier in the day, Charter announced it would offer Time Warner Cable shareholders about $132.50 a share in cash and stock, with the news sending the latter's price rising to $134.84 in after-hours trading. "Charter's latest proposal is a non-starter. ... It substantially undervalues TWC and would represent an EBITDA multiple of approximately 7X, well below past transactions in the cable sector," Time Warner Cable Chief Executive Officer Rob Marcus said in a statement rejecting the offer. Marcus also said that "because a significant portion of the purchase price would be in Charter stock, the actual value delivered to TWC shareholders could be substantially lower given the valuation, operational, and significant balance sheet risks embedded in Charter's stock."

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